Hilton is laying down $550 million on the supposition that consumers, particularly Millennials between the ages of 18 and 34, want their hotel experience to be more seamlessly mobile compatible.
Coming soon to Hilton brands – which includes both the midscale Hilton Garden Inn and the luxury Waldorf Astoria – will be the ability to choose a room, check-in and out and even unlock the room door, all from a phone or tablet.
“We are giving customers unprecedented choice and control at scale, and in the palm of their hands,” says Christopher Nassetta, Hilton’s chief executive, according to The Wall Street Journal.
Hilton’s technology upgrade follows similar moves in the hotel space geared to lure mobile-savy consumers. Marriott and Starwood have both made similar technological pushes, allowing customers to check-in remotely and access their room via mobile app.
“It’s a race for loyalty,” says Guy Langford, head of Deloitte LLP’s U.S. hospitality and leisure practice, reports the source. “There will be a first-mover advantage for the company that provides a seamless technological experience. But these companies have to constantly evolve and understand the millennial’s changing preferences.”
Mobile upgrades allow hotel chains direct online access to the consumers, cutting out the middle man (and fees) charged by third-party travel booking operators such as Expedia. Mobile books also give hotel chain operators access to consumer data that is independently valued by industry.
Hilton will be picking up the bulk of costs for its technological upgrade, though local franchise operators will be on the hook for some ancillary costs of improvement.
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